Tiffany & Co. is Acquired by LVMH for $16.2 Billion

The Paris-based luxury group revealed that it agreed to pay Tiffany & Co. $16.2 billion in a statement it issued Monday.

by
Chloe Luk

Last Updated: Mar 26, 2020

LVMH, Moët Hennessy Louis Vuitton, the world’s largest luxury goods company, said on Monday that it had reached an agreement to buy the jeweler Tiffany & Co. in a $16.2 billion deal: the largest deal ever made in the luxury sector. As a result, this investment cemented the status of Bernard Arnault, LVMH chairman and chief executive, as the most acquisitive deal maker in the luxury business. LVMH’s purchase of Tiffany & Co. “will strengthen LVMH’s position in jewelry and further increase its presence in the United States,” the brand explained in a statement released this morning, November 25th, adding that Tiffany & Co. will help to strengthen its jewelry division and other luxury brands. It was noted that LVMH was bidding against Richemont, the Swedish luxury goods holding company, among many others.

“Tiffany is an American icon and was on the list of brands for a long time we thought was a good potential match,” Mr. Arnault said in a telephone interview from Paris. Tiffany & Co., a brand that has transcend over 182 years, famous for its Tiffany Blue boxes, currently employs 14,000 people and operates 300 stores around the globe. LVMH hopes to expand Tiffany globally more in the Asia market, as most of their annual sales come from the U.S. As a result, this would not only boost sales but would help the brand become a household name in China and Hong Kong. “We are delighted to have the opportunity to welcome Tiffany, a company with an unparalleled heritage and unique position in the global jewelry world, to the LVMH family,” Arnault added. “We will be proud to have Tiffany sit alongside our iconic brands and look forward to ensuring that Tiffany continues to thrive for centuries to come.”

Alessandro Bogliolo, Chief Executive Officer of Tiffany & Co., mediated: “this transaction, which occurs at a time of internal transformation for our legendary brand, will provide further support, resources and momentum for those priorities as we evolve towards becoming The Next Generation Luxury Jeweler” –– we can’t wait to see what the future of the brand has in store!

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